$ 100 Million Dollar Commodity Traders

Watch the news and you will invariably see the next blowout in the making.  Commodity prices followed the asset bubble and topped a year ago.  Now paper assets have seen a significant rally and commodities have gone up with them.  What a great time to hire some hot-shot commodity trader.  Such is the craziness of the big banks and hedge funds. 

For us two big things stand out in the macro picture.  First, the government stimulus around the world is a fraction of the paper losses the bubble bursting ignited.  No grand plan can undo years of greed. Secondly, the next phase of the unraveling of the markets over the next couple of years will find a scenario where no entity will be to big to fail.  The public has had it with all bailouts and salary nonsense.  When the rich finally get hit, you will know that the economy is at a level where a bull market is ready to begin.  We are not even close, try inserting $ 11 oil and  $ 130 gold into your macro equations.

The 985 level on the S&P is basically resistance now with some bounce probably coming at the 935 level.

8:33 AM CDT